Due to recent turbulence across technology and software stocks, there has been a renewed debate surrounding advancing artificial intelligence tools and their ability to reshape competitive dynamics across the industry.
This volatility has certainly impacted investors, who are increasingly becoming selective about the names they are investing in. In recent news, Wall Street analysts have been buying into the excitement over Chinese AI stocks.
A wave of listings has shown JPMorgan Chase & Co. recommending investors to buy the stocks of AI intelligence model developers MiniMax Group Inc. and Knowledge Atlas Technology JSC Ltd., also known as Zhipu.
Meanwhile, Goldman Sachs Group Inc. has rated chip designers Shanghai Biren Technology Co. and MetaX Integrated Circuits Shanghai Co. as new buys based on robust AI growth outlook.
“We believe MiniMax and Zhipu stand out as the two most distinctive independent large language model developers with accelerating global footprints.”
While market narratives experience volatility, changes in analyst ratings and price targets can be a useful way to gauge emerging conviction trends. On this note, we examine ten trending artificial intelligence stocks according to analysts.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
10. monday.com Ltd. (NASDAQ:MNDY)
Number of Hedge Fund Holders: 55
Despite slashing its price target on MNDY, DA Davidson analyst Lucky Schreiner remains constructive on the shares. On February 9, Schreiner lowered the price target to $150.00 (from $250.00) while maintaining a “Buy” rating, citing a disconnect between market pessimism and strong customer satisfaction in core product.
The firm said that it is trimming its FY26 estimates for the stock ahead of its fourth-quarter 2025 results due to longer sales cycles that Monday.com is navigating. Its recent customer checks have also been less constructive, particularly around the adoption of new MNDY products like Service.
Despite this, customers still view the company’s core work management solution “very positively,” noted the firm. Customers are not showing interest in building their own custom solutions as alternatives to monday.com’s core product.
“Shares are down 34% YTD based on the belief MNDY will no longer grow moving forward. We disagree with that view making this a straightforward BUY.”
monday.com Ltd. (NASDAQ:MNDY) develops software applications globally, offering a cloud-based Work OS for creating work management tools.
9. Fortinet, Inc. (NASDAQ:FTNT)
Number of Hedge Fund Holders: 62
BMO Capital remains measured in its outlook following Fortinet’s Q4 2025 earnings. On February 9, firm analyst Keith Bachman raised the price target on the stock to $95.00 (from $90.00) while maintaining a “Market Perform” rating. The firm has noted upside in billings & SASE traction but remains cautious on services revenue growth.
According to the firm, Fortinet delivered upside to consensus across key metrics excluding services revenue growth. It noted that management’s fiscal year 2026 billings growth guidance of 13% year-over-year surpassed the consensus estimate of 11%, likewise a positive surprise for investors.
Looking ahead, BMO Capital anticipates potential upside to topline estimates, expecting Fortinet to gain additional traction in the Secure Access Service Edge (SASE) market. However, the firm has expressed its disappointment related to services growth, demanding an improvement for holding a more constructive outlook.
“To move to a more constructive stance on the shares, we need conviction that services revenue growth can improve. We maintain our Market Perform rating and raise our target price to $95.”
Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.
8. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 72
Despite guidance striking a cautious stone for Datadog, Rosenblatt sees robust execution and AI tailwinds for the cyber security company. On February 9, firm analyst Blair Abernethy reiterated a Buy rating and $185.00 price target. Strong Q4 beat, AI-native customer momentum, and large deal wins has reinforced firm’s confidence in the stock.
The firm noted how DDOG posted robust results, highlighting Q4 revenue growth of 29% which exceeded both guidance and consensus expectations. Robust operating margins of 24.1%, the revenue growth for the company was largely driven by increasing demand of cloud migration and digital transformation backed by growth in customer usage.
The firm highlighted that total customers count grew by 700 to 32.7k in Q4. Cloud migration and digital transformation initiatives continue to support demand, alongside growing contributions from AI-native customers.
Large deal activities in the quarter also led to a surge in its bookings, the firm noted. While management’s FY26 revenue growth guidance of 18.5% to 19.6% seems conservative compared to expectations, the firm has expressed confidence in DDOG’s trajectory, market expansion efforts, and early momentum in FY26.
Datadog, Inc. (NASDAQ:DDOG) offers a cloud-based SaaS platform for monitoring and analytics, specializing in cloud computing and AI-powered cybersecurity products.
7. Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 80
Reddit has recently emerged as Needham’s Top Pick for 2026. On February 9, the firm’s analyst Laura Martin reiterated a Buy rating on the stock with a $300.00 price target. RDDT’s Top Pick ranking is supported by execution excellence, rapid margin expansion, and deep community moat.
The company reported its fourth-quarter 2025 financial results last week, posting revenues of $725.6 million for Q4 2025, a 70% year-over-year increase and beating Needham’s estimate by 9%.
Its adjusted EBITDA reached $327 million, up 112% year-over-year and 16% above analyst’s expectations. Non-GAAP earnings per share came in at $1.72, a 99% year-over-year increase and exceeding the firm’s estimate by 18%.
The 70% rise in revenues, the firm highlighted, were driven by 75% year-over-year ad revenue growth, with average revenue per user (ARPU) up 44% and user growth of 18%.
It has highlighted Reddit as its top pick for 2026 based on the platform’s strategic position with “100% human-created content.” This is a factor that becomes more valuable and differentiated as AI language models proliferate.
Needham also acknowledged Reddit’s “execution excellence” with over 60% revenue growth for the past six quarters.
“Our Take RDDT is our top pick for 2026, based on: Strategic position with 100% human-created content, which becomes more differentiated and valuable as LLM bots multiply; Execution excellence, with >60% rev growth for the past 6 quarters, ad revs up 75% in 4Q25, optionality upside from LLM licensing revs and rapid margin expansion, and, Difficulty in replicating a human community like RDDT today, creates a deep moat.”
Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement.
6. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
After three years of triple-digit gains, Palantir stock has retreated more than 20% since the start of the year. Nevertheless, Daiwa has upgraded the stock post earnings, citing artificial intelligence-driven growth momentum amid bigger contracts. On February 10, Daiwa Securities analyst Shigemichi Yoshizu upgraded the stock to “Buy” from Neutral.
For the full-year 2026, the company said that it expects revenue of almost $7.2 billion, up about 61%.
“The robust showing continued to be driven by the US business which saw US commercial revenue surge 137%, accelerating 16 points vs. 3Q.”
“This owed to an increase in long-term commitment contracts following the proof-of-concept stage, as customers are now implementing AI on a companywide basis using the firm’s artificial intelligence platform (AIP). As a result, growth in the customer base has moderated, but contracts are becoming larger thanks to greater usage by existing customers.”
The firm further noted how Palantir has been prioritizing the deeper integration of its platform by existing customers instead of aggressively pursuing new customer acquisitions. Consequently, it has been enjoying an increase in long-term commitment contracts.
“ARPU (average revenue per user) has continued to grow, led by the U.S. commercial business. In the short term, we see a high likelihood of the firm continuing to use this business model, premised on growth driven by existing customers. As such, we think the firm’s current earnings projections look achievable/reasonable.”
Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.
5. Micron Technology, Inc. (NASDAQ:MU)
Number of Hedge Fund Holders: 105
As debates around the durability of the memory cycle continue, Deutsche Bank recently took a more constructive outlook on Micron. The firm reiterated the stock as “Buy” and raised its price target to $500 per share from $300.
Given the tight supply and demand dynamics in the memory market, the firm anticipates a favorable environment for Micron in coming quarters.
“…we see the current market environment as remaining favorable for MU in the coming quarters.”
Deutche Bank increased its calendar year 2026 earnings per share estimate to $46.50 and raised the price target on approximately 11 times that figure after adjusting for tight supply/demand dynamics and better pricing.
“The target multiple stands above the company’s 5 yr median NTM P/E ~10x, given unprecedented tightness within the memory market as well as MU’s position as a top memory vendor.”
The firm is increasingly confident in Micron’s ability to capitalize on HBM growth and improved memory-market dynamics. Both of these factors, it believes, will lead to strong growth in revenue and EPS.
Potential downside risks also exist, such as additional supply being brought on by competitors, a deterioration in memory pricing, changes in memory content per application, technological development at Chinese competitors, and more.
Micron Technology, Inc. (NASDAQ:MU) develops and sells memory and storage products for data centers, mobile devices, and various industries worldwide.
4. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 115
Tesla’s ambitions beyond electric vehicles seem to be drawing in renewed scrutiny, prompting fresh analysis from Wall Street. On February 10, Morgan Stanley reiterated the stock as “Equal Weight,” citing is constructive outlook on Tesla based on its opportunity in solar. The firm has $415 price target on the stock.
“We believe TSLA’s decision to allocate capital to solar mfg is rooted in a strategic long-term outlook around evolving geopolitics and data center demand. Besides the potential 35% uplift to our Tesla Energy valuation, it offers potential synergies by integrating deeper into the energy supply chain.”
Morgan Stanley’s rating follows the company’s tentative announcement to add 100 GW of solar manufacturing capacity. It believes that Tesla’s plan to vertically integrate solar manufacturing aligns with CEO Elon Musk’s goal for the deployment of solar-powered data centers in space.
Based on preliminary estimates, Tesla Solar could add $20-$50 billion ($6-$14 per share) of equity value to Tesla’s Energy business at full capacity. The firm currently values this at $140 billion ($40 per share).
While immaterial to Tesla’s overall valuation, the capital allocation seems justified by the value creation and growth opportunities, an investment without which the EV maker could face numerous energy-related bottlenecks.
Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.
3. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 122
Oracle received a fresh boost from Wall Street after DA Davidson upgraded the stock based on expectations of stronger deal momentum. On February 9, analyst Gil Luria went from Neutral to “Buy” with a price target of $180.00. The firm sees revamped OpenAI as key to removing ORCL’s top overhang, noting that it is better positioned to capitalize on AI deals.
According to the firm, the biggest overhang on the company, which is its exposure to OpenAI, is now easing. A revamped OpenAI, it noted, will return to its position as Google’s top challenger. It further added that with fresh capital it should be able to “live up to its obligations this year, including to Oracle.”
The firm believes that this will remove the biggest concern from Oracle, which is why it has upgraded shares to Buy from Neutral.
Oracle Corporation (NYSE: ORCL) is a database management and cloud services provider.
2. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 183
Another AI winner, Broadcom has received fresh Wall Street support after analysts pointed to accelerating TPU demand, sharp AI revenue ramp, and robust custom ASIC visibility through 2028. On February 10, UBS analyst Timothy Arcuri reiterated a Buy rating on the stock with a $475.00 price target.
With LLM developers pushing their custom ASIC roadmaps more aggressively, it is driving rising demand for TPUs as an alternative to GPUs. The firm has projected that Broadcom will ship more than 5 million TPU units in calendar 2027, up from an estimated 3.7 million units expected in 2026.
Of these, more than half of 2027 shipments will be v7 (Ironwood) models before v8ax (Sunfish) becomes the majority of shipments in 2028. Both of these products will be based on TSMC’s N3 process.
Broadcom’s AI revenue is now forecast to reach an estimated $60 billion for fiscal 2026, a 200% year-over-year growth. This will further increase to approximately $106 billion in fiscal 2027 (up 80% year-over-year) and approximately $150 billion in fiscal 2028.
For custom compute revenue, Google will account for about $30 billion of revenue this year, growing to an estimated $56 billion in calendar 2027. Anthropic’s racks will represent most of the remaining TPU revenue alongside a smaller portion to Meta.
“We expect AVGO to start shipping OpenAI’s ASIC late this year and Anthropic’s ASIC in 2H:27. On the back of this, our EPS for C2026/2027/2028E is now ~$12.70/~$18/~$22.50 and our PT remains $475 and we remain Buy.”
Broadcom is a technology company uniquely positioned for the AI revolution, thanks to its custom chip offerings and networking assets.
1. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 234
Recent Taiwan data is strengthening the bullish case for AI chipmaker Nvidia. On February 10, UBS analyst Timothy Arcuri reiterated a Buy rating on the stock with a $235.00 price target. Firm analysts point to robust Taiwan ADP export data which reinforce confidence in earnings upside.
The firm highlighted how Taiwan’s Ministry of Finance released January export data showing Automatic Data Processing equipment (ADP) excluding laptops reached $22.6 billion. This is an 8% month-over-month increase from December’s $20.9 billion, well ahead of normal seasonal trends which typically show a 4% monthly decline.
According to the data, the higher export run rate that began in October ($22.2 billion versus September’s $14.1 billion) has stabilized with little monthly variance in December and January.
Taiwan’s ADP exports now stand at $66.2 billion for the full fiscal fourth quarter, a 25% quarter-over-quarter increase, and well ahead of the estimated 18% Q/Q growth it modeled for NVDA data center revenue.
“This is well ahead of the ~18% Q/Q growth we model for NVDA data center revenue, so while this data has decoupled with NVDA’s results in recent periods, Taiwan ADP exports would appear to support additional upside in the NVDA print.”
The firm also recently highlighted SIA December data, which came in above seasonal trends.
“The next read will be TSMC January sales, likely to be out Friday.”
NVIDIA Corporation (NASDAQ:NVDA) specializes in AI-driven solutions, offering platforms for data centers, self-driving cars, robotics, and cloud services.
While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has 100x upside potential, check out our report about this cheapest AI stock.
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